Moving on to fit. What is the definition of fit…images of a fit athlete come to mind. No, that is not what we are talking about. Focus! This is the MBA exams. More jargon to confuse people (as if the medical jargon was not enough)
Fit is a concept. The organisational structure, systems, and values should be aligned with the strategy, and the strategy itself should be the best in the given envi…ronment.
Definition of fit; again, hello Mr Porter (Harry Potter is close?)
Porter levels of fit (1996): 1st order = simple consistency 2nd order = reinforcing fit 3rd order = optimization of effort
Back to our case study: Esquel. So, to what level has Esquel achieved fit for its strategy of differentiation. Here is where we get to draw and mesmerise the lecturer with our value chain analysis.
I would say Esquel has achieved 3rd order fit because….oppps time for lunch.See More